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Adoption of Renewable Home Heating Systems: An Agent-Based Model of Heat Pump Systems in Ireland

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  • Tensay Meles
  • L. (Lisa B.) Ryan

Abstract

Concern about climate change and dependence on fossil fuels is inducing countries to develop and deploy renewable energy technologies. Heat pump systems, which extract heat either from the air, water, or ground sources, are among the viable options for space heating and domestic hot water production in the residential sector. In this paper, we develop an agent-based model to analyze the adoption process of heat pump systems and the underlying diffusion factors. Uniquely, we use a recent nationally representative Irish household survey data to derive parameters for decision rules for technology adoption in the model. In this research, we explore how financial aspects, psychological factors and social networks influence the adoption and diffusion of heat pump systems. We also discuss how individual household socio-demographic characteristics, building characteristics, geographical location of household and policy incentives affect the adoption process. The research should be of interest to policymakers, as we use the model to test the impact of various policies on technology adoption rates.

Suggested Citation

  • Tensay Meles & L. (Lisa B.) Ryan, 2020. "Adoption of Renewable Home Heating Systems: An Agent-Based Model of Heat Pump Systems in Ireland," Working Papers 202030, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:202030
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    File URL: http://hdl.handle.net/10197/11780
    File Function: First version, 2020
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    References listed on IDEAS

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    More about this item

    Keywords

    Agent-based model; Heat pump systems; Energy economics; Renewable energy technology adoption; Ireland;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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